Long Term Portfolio (cha)

Hello People,

Instrument Avg cost. Current Weightage
AU Bank 641.44 3.96

I think you have picked good set of companies. Hold for long term and do keep track of them.Probably you can look for Auto ancillary ,Dye/intermediate chemical (China pollution factor),Paint(Indian paint companies are getting technologically superior,good demand from housing and infra,govt lowering gst,companies trying to shift from Crude based product to water based).But whatever you have picked is best available.

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BFSI heavy portfolio. I see many of the recently listed stock names(IPO Alloted?).

Can you post the rationale, according to you which will play out in respective stock.

Also, in my view buy price does not matter once you have bought the share. All that matters is current market price.

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Instrument Avg cost. Current Weightage Rationale
AU Bank 641.44 3.96 one of the fastest growing small finance Bank.

In general i expect the earnings growth of PF to be 12-15%.

If your objective is to earn 12-15%, then I also suggest a disciplined SIP into top rated
Mutual Funds in direct plans.

Don’t ignore debt funds as well - good short term debt funds are currently having YTM of around 8% which is not bad when market is at all time highs.

You can achieve 15% CAGR in capital with significantly lower risk.

Also, if you want to achieve higher return - say 20% plus. Then keeping 4-5% in 20 stocks will not help as all of the stocks will have to perform at high levels. You can reduce allocation to those stocks with low conviction and increase allocation to those with higher conviction

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how you were able to buy this cheap ?

I believe the IPO range for HDFC AMC was ₹1050-₹1100.

this was IPO allotment

If I may ask - Why do you consider HDFC AMC is better than RNAM. No doubt, HDFC is market leader, but doesn’t the massive valuation gap and more than decent growth shown by RNAM warrant to be with RNAM?

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I will not go to justify valuation of HDFC AMC. But there is differences.There is difference on margin.In Same sector HDFC earns more and low cost operator.Basically its due to huge share of high margin equity . Below metrics…

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We already having a seperate post for this … HDFC Asset Management Company